eagle bulk q3 fy2012 results presentation
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EAGLE BULK SHIPPING INC. 3Q 2012 Results Presentation
9 November 2012
EAGLE BULK SHIPPING INC. 2
Forward Looking Statements
This presentation contains certain statements that may be deemed to be “forward-looking statements”
within the meaning of the Securities Acts. Forward-looking statements reflect management’s current
views with respect to future events and financial performance and may include statements concerning
plans, objectives, goals, strategies, future events or performance, and underlying assumptions and
other statements, which are other than statements of historical facts. The forward-looking statements
in this presentation are based upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, management's examination of historical operating
trends, data contained in our records and other data available from third parties. Although Eagle Bulk
Shipping Inc. believes that these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it
will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view,
could cause actual results to differ materially from those discussed in the forward-looking statements
include the strength of world economies and currencies, general market conditions, including changes
in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers
to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-
docking and insurance costs, or actions taken by regulatory authorities, ability of our counterparties to
perform their obligations under sales agreements, charter contracts, and other agreements on a timely
basis, potential liability from future litigation, domestic and international political conditions, potential
disruption of shipping routes due to accidents and political events or acts by terrorists. Risks and
uncertainties are further described in reports filed by Eagle Bulk Shipping Inc. with the US Securities
and Exchange Commission.
EAGLE BULK SHIPPING INC. 3
Results and Highlights
Commercial
Industry
Financials
Q&A
Appendix
Agenda
EAGLE BULK SHIPPING INC.
Results and Highlights
EAGLE BULK SHIPPING INC.
3Q 2012 Results and Highlights
5 5
Net reported loss of $29.8 million or $1.77 per share (based on a weighted average of
16,821,024 diluted shares outstanding for the quarter), compared to net loss of $5.9
million, or $0.37 per share, for the comparable quarter in 2011
Net revenues of $46.9 million, compared to $80.3 million for the comparable quarter in
2011. Gross time charter and freight revenues of $48.9 million, compared to $84.0
million for the comparable quarter in 2011
EBITDA, as adjusted for exceptional items under the terms of the Company's credit
agreement, was $12.5 million for the third quarter of 2012, compared with $25.9 million
for the third quarter of 2011
Fleet utilization rate of 99.4%
EAGLE BULK SHIPPING INC. EAGLE BULK SHIPPING INC.
Commercial
EAGLE BULK SHIPPING INC. 7
Dynamic Approach to Chartering
Chartering strategy remains staying “short” in duration until market normalizes
41% 11% 48%
0% 20% 40% 60% 80% 100%
Fixed Index Open
Timecharter (fixed)
Index
Spot (open)
COA / Voyage
(fixed)
Commercial Management
4Q 2012 Chartering Position (as of September 30, 2012)
Fleet Statistics
Vessel Count 45 DWT 2,451,259 Average Age* 5.4 yrs
* Average age calculated on a DWT-basis
EAGLE BULK SHIPPING INC. 8
Cargoes Carried During the Third Quarter 2012
Diversified Cargo Mix
Cargo Type MT as a % of Total
1 Coal Major 1,785,024 34.4%
2 Grains / Agricultural Major 599,359 11.6%
3 Cement Minor 420,659 8.1%
4 Iron Ore Major 396,212 7.6%
5 Steels / Pig Iron / Scrap Minor 324,740 6.3%
6 Potash / Fertilizer Minor 278,405 5.4%
7 Limestone Minor 239,036 4.6%
8 Sand Minor 199,971 3.9%
9 Miscellaneous Minor 188,829 3.6%
10 Other Ores Minor 180,090 3.5%
11 Coke Minor 145,295 2.8%
12 Sugar Minor 139,259 2.7%
13 Forest Products Minor 119,876 2.3%
14 Alumina/Bauxite Minor 89,662 1.7%
15 Copper Minor 79,314 1.5%
Total Cargoes Carried 5,185,731 100.0%
46.4%
53.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Minor Major
Cargo Mix by Type
EAGLE BULK SHIPPING INC.
Industry
EAGLE BULK SHIPPING INC. 10
Source(s): Arcelor Mittal, Clarksons, USDA
Supply growth totaled 20.3 million DWT,
or 242 vessels, +3.1% Q/Q
Global steel production down 3.3% Q/Q
Third quarter 2012 Chinese industrial
production decreased to 9.2%, -11% Q/Q
U.S. grain exports severely impacted by drought
YTD grain inspections down 11% Y/Y
Supramaxes outperform in depressed market
Spot earnings down 7.8% Q/Q versus BDI
which posted a decrease of 17.4%
Freight Market Weakness Intensifies in 3Q 2012
Average Baltic Spot Rates ($/day)
Supramax Panamax Capesize
1Q 2012 $8,679 $7,983 $6,970
2Q 2012 $11,170 $9,529 $6,030
3Q 2012 $10,301 $6,640 $4,827
Supramax asset class resilient
3Q 2012 Steel Consumption (quarter-on-quarter % change)
-11.90%
-4.80%
-3.30%
-1.30%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
E.U. U.S.A. Global China
EAGLE BULK SHIPPING INC. 11
Source(s): Clarksons
Newbuilding Deliveries Beginning to Recede
Orderbook depleting rapidly
Projected Newbuilding Orderbook (a % of the fleet)
0%
5%
10%
15%
20%
25%
Sep-12 Dec-12 Dec-13 Dec-14 Jul-15
Drybulk newbuilding orderbook as a % of the fleet
Newbuilding Deliveries (in million DWT)
New orders placed in 2012 down 66% Y/Y
Depressed earnings environment
Relative attractiveness of second-
hand market
Lack of financing
Newbuilding supply growth at peak levels
LTM delivery growth trend by asset class:
Supramax -10%
Panamax +29%
Capesize +2%
0
2
4
6
8
10
12
14
16
Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12
Actual 3m Moving Average
EAGLE BULK SHIPPING INC.
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
5
10
15
20
25
30
35
40
45
Capesize Panamax Sub-Panamax
Vessels in million DWT as a % of Fleet (DWT)
12 Source(s): Clarksons
Scrapping at historical highs
Ship Demolition Continues to Offset Supply Growth
Scrapping
(in million DWT)
Fleet Over 20 years of Age
(
121 vessels
265 vessels
1,320 vessels
Full year 2012 demolition on pace to reach
34 million DWT, +47% Y/Y
Scrap prices remain at elevated levels
Over 1,700 vessels are over 20 years of
age, amounting to 83.4 million DWT
Equates to 12.4% of the current fleet
0
5
10
15
20
25
30
35
1972 1977 1982 1987 1992 1997 2002 2007 2012e
Annual Demolition
EAGLE BULK SHIPPING INC. 13
Source(s): Clarksons, IMF, JPM
Short-term factors capping recovery
Global macro weakness
China leadership transition
European sovereign debt crisis
U.S. fiscal cliff
High Chinese coal inventories
U.S. drought
Ukrainian grain export ban
Medium-term catalysts leading to a recovery
Chinese stimulus
Resolution in Euro-area
Stronger U.S. growth
Global liquidity accommodation
Low commodity prices / restocking
Short and medium-term Demand Outlooks Mixed
Euroland Real GDP Growth (annualized quarterly % change)
China Power Plant Coal Inventory Days
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
Euroland Periphery
10
15
20
25
30
35
Sep-09 Sep-10 Sep-11 Sep-12
EAGLE BULK SHIPPING INC. 14
Source(s): Clarksons, Macquarie, Peabody
Minor bulk and agricultural trades projected
to grow at a 3 to 5% long-term average
Global annual steel production to increase
40% by 2020 to reach 2 billion MT
Driving strong demand growth for
iron ore and metallurgical coal
Over 370 GW of new coal-fueled power
capacity coming online by 2016
Equates to 1.2 billion MT in
incremental thermal coal demand
Indonesia and Australia expected
to source majority of this growth
African exports to gain momentum
Long-term Drybulk Fundamentals Remain Strong
Coal to dominate drybulk trade growth
Indian and Chinese Coal Imports (in million MT)
0
100
200
300
400
500
600
2000 2002 2004 2006 2008 2010 2012e 2014e 2016e
India China
0%
20%
40%
60%
80%
1990 2010 2030e 2050e
India China Rest of World
Urbanization Rates
EAGLE BULK SHIPPING INC.
Financials
EAGLE BULK SHIPPING INC. 16
Earnings (in thousands, except per share data)
*EBITDA, as defined in our Credit Agreement
EAGLE BULK SHIPPING INC. 17
Balance Sheet (in thousands)
EAGLE BULK SHIPPING INC. 18
2012 Estimated Cash Breakeven
ASSUMPTIONS:
Vessel expenses are comprised of the following: crew wages and related, insurance, repair and maintenance, stores,
spares and related inventory, and tonnage taxes.
Interest expense takes into consideration Eagle Bulk’s view and projection of LIBOR rates.
Drydocking expense is based on estimated costs for anticipated vessel drydockings over the next four quarters.
EAGLE BULK SHIPPING INC.
Q&A
EAGLE BULK SHIPPING INC. EAGLE BULK SHIPPING INC.
EAGLE BULK SHIPPING INC.
Appendix
EAGLE BULK SHIPPING INC. 22
Fleet
Vessel DWT Year
Built Vessel DWT
Year
Built Vessel DWT
Year
Built
1 Sandpiper Bulker 57,809 2011 16 Avocet 53,462 2010 31 Kestrel I 50,326 2004
2 Roadrunner Bulker 57,809 2011 17 Thrasher 53,360 2010 32 Skua 53,350 2003
3 Puffin Bulker 57,809 2011 18 Golden Eagle 55,989 2010 33 Shrike 53,343 2003
4 Petrel Bulker 57,809 2011 19 Egret Bulker 57,809 2010 34 Tern 50,200 2003
5 Owl 57,809 2011 20 Crane 57,809 2010 35 Kittiwake 53,146 2002
6 Oriole 57,809 2011 21 Canary 57,809 2009 36 Goldeneye 52,421 2002
7 Nighthawk 57,809 2011 22 Bittern 57,809 2009 37 Osprey I 50,206 2002
8 Thrush 53,297 2011 23 Stellar Eagle 55,989 2009 38 Falcon 50,296 2001
9 Martin 57,809 2010 24 Crested Eagle 55,989 2009 39 Peregrine 50,913 2001
10 Kingfisher 57,776 2010 25 Crowned Eagle 55,940 2008 40 Condor 50,296 2001
11 Jay 57,802 2010 26 Woodstar 53,390 2008 41 Harrier 50,296 2001
12 Ibis Bulker 57,775 2010 27 Wren 53,349 2008 42 Hawk I 50,296 2001
13 Grebe Bulker 57,809 2010 28 Redwing 53,411 2007 43 Merlin 50,296 2001
14 Gannet Bulker 57,809 2010 29 Cardinal 55,362 2004 44 Sparrow 48,225 2000
15 Imperial Eagle 55,989 2010 30 Jaeger 52,248 2004 45 Kite 47,195 1997
* Average age calculated on a DWT-basis
VESSEL COUNT 45 DWT 2,451,259 AVERAGE AGE* 5.4 yrs
EAGLE BULK SHIPPING INC. 23
Charters (as of September 30, 2012)
Vessel
Charter Expiry Charter
Base
Rate
Vessel
Charter Expiry Charter
Base
Rate
Vessel
Charter Expiry Charter
Base
Rate Earliest Latest Earliest Latest Earliest Latest
1 Sandpiper Bulker 8/2014 12/2014 $17,650 16 Avocet 10/2012 10/2012 $9,000 31 Kestrel I 3/2013 5/2013 $9,500
2 Roadrunner Bulker 8/2014 12/2014 $17,650 17 Thrasher 10/2012 10/2012 $10,000 32 Skua 10/2012 10/2012 $8,250
3 Puffin Bulker 5/2014 9/2014 $17,650 18 Golden Eagle 10/2012 12/2012 $10,500 33 Shrike 12/2012 3/2013 $11,300
4 Petrel Bulker 5/2014 9/2014 $17,650 19 Egret Bulker 10/2012 2/2013 $17,650 34 Tern 10/2012 10/2012 $5,750
5 Owl 10/2012 10/2012 $8,500 20 Crane 10/2012 10/2012 $11,500 35 Kittiwake 10/2012 1/2013 $10,500
6 Oriole 10/2012 10/2012 $8,400 21 Canary 10/2012 1o/2012 $11,000 36 Goldeneye 10/2012 1/2013 BSI*
7 Nighthawk 11/2012 11/2012 $12,500 22 Bittern 10/2012 10/2012 $7,800 37 Osprey I 10/2012 10/2012 voyage
8 Thrush 10/2012 10/2012 $9,000 23 Stellar Eagle 3/2013 6/2013 BSI* 38 Falcon 12/2012 2/2013 $8,000
9 Martin 11/2012 2/2013 $8,300 24 Crested Eagle 10/2012 10/2012 $10,500 39 Peregrine 12/2012 3/2013 $8,250
10 Kingfisher 11/2012 2/2013 $8,900 25 Crowned Eagle 10/2012 10/2012 voyage 40 Condor 11/2012 1/2013 $11,000
11 Jay - - spot 26 Woodstar 10/2012 10/2012 $7,200 41 Harrier 10/2012 11/2012 $5,000
12 Ibis Bulker 3/2013 7/2013 $17,650 27 Wren 10/2012 11/2012 $13,000 42 Hawk I 11/2012 11/2012 $7,250
13 Grebe Bulker 2/2013 6/2013 $17,650 28 Redwing 10/2012 10/2012 $10,000 43 Merlin 11/2012 11/2012 voyage
14 Gannet Bulker 1/2013 5/2013 $17,650 29 Cardinal 11/2012 2/2013 BSI* 44 Sparrow 10/2012 10/2012 $8,500
15 Imperial Eagle 11/2012 2/2013 BSI* 30 Jaeger 11/2012 1/2013 BSI* 45 Kite 10/2012 11/2012 $7,250
*BSI= Baltic Supramax Index